Incentive plans

Incentive plans

Introduction

Incentive plans are the systematic campaigns for the people that are linked to the companies or organizations, therefore, these plans are designed to: Promote specific actions, achievement of a specific target, production of measurable results, and integration of motivational strategies, along with the establishment of a new way of doing direct marketing.

However, this definition can be supported with two points proposed by the Incentive Marketing Association as an option for the companies to achieve sustained competitive advantage in the market over other companies. These two points, used by the IMA to support the benefit of incentives is translated through two simple formulas:

Ability x Motivation = better performance

The Incentive Marketing Association proposes that the key to business success is based on the performance of individuals. For this reason, he believes the best way to increase the performance of individuals is combining the ability to motivation. For this to happen, the motivation is to be achieved through incentive programs that are structured in ways that seek to achieve results aligned to better performance.

A satisfied person = A motivated person

In this formula, the Incentive Marketing Association says a satisfied person is equivalent to a statement of reasons. That is, a satisfied person is one who is happy and satisfied with your results, which, therefore, should be linked to improved performance. Briefly through only motivation is achieved an improvement in the result.

Finally, I want to delve into some results that the Incentive Marketing Association has put on its website after many studies in recent years. These results are only a sign that the goals outlined in the above definition are met and can be analyzed.

Incentive programs increase performance - 44% equipment, 22% for singles.

A motivated team increases customer service.

The more you motivate the employee, will be more committed to the goals of the organization.

Motivation improves retention and customer confidence.

Motivation reduces employee turnover and increases attitude.

Incentive programs generate a verifiable ROI.

Discussion

Incentive plans seeks to motivate the employees of the company towards achieving a certain goal (e.g. more sales, improve productivity, or improve the quality of care that is the case we pose) by including certain economic compensation or otherwise (such as recognition). The incentive plan target is to improve the quality of customer service. Improving the quality of customer service can be achieved in many ways, for example: a cordial and friendly communication with customers by bank employees, efficiency in solving the problems so that the client does not have to re-contact the bank ... In any case, keep in mind that this incentive scheme is primarily aimed at employees who have direct contact with customers in the offices, as well as areas that support the management of the company even when the company is not in direct contact with the customers (Ibbs et.al, 1988). Being clear about the purpose of the incentive plan would seek ideas to help in defining this plan primarily in one of these four aspects:

Single measurement ...